Amstar Sells Hilton Alexandria Mark Center for $121m
Crow Holdings' latest real estate fund, Crow Holdings Realty Partners V purchased the hotel. Amstar purchased the 30-story property with its joint venture and management partner, Davidson Hotel Company, during June 2005.
The purchase price was $93.2m and the partnership then completed a comprehensive $9.3m renovation during 2006. After the renovation and having improved operations, Amstar refinanced the hotel during June 2007, allowing a full return of equity to its investors. Davidson Hotel Company will continue to manage the hotel.
Currently under construction adjacent to the property are two office towers totaling approximately 1.4 million square feet. During 2011, the first of 6,400 Department of Defense (DoD) employees will begin working out of this new Mark Center office space as part of a major consolidation of DoD workers in Northern Virginia.
The extensive new development is part of the base realignment and closure (BRAC) program. The new office buildings add to the significant existing multifamily, restaurant, and office space in Mark Center.
Adam Minnick, executive director of Amstar, said: â€œThe Hilton Alexandria has been a case study of Amstar's hotel strategy. Acquiring the property at an attractive basis, improving the physical asset and streamlining the operations were key enablers of adding value, while the refinancing allowed our investors to hold the asset until BRAC became a reality and catalyzed the sale. This investment epitomizes Amstar's nimble, yet patient philosophy.â€
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